AMMB and Astro could be excluded from KLCI in next review, says CIMB Research

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KUALA LUMPUR (Mar 29): CIMB IB Research said the next FBM KLCI review is due in May 2018, approximately two months from now.

In a strategy note March 28, the research house however said due to significant movement in KLCI constituents’ share prices, there are some concerns about possible changes in the KLCI members at the next review.

“We take a look at the index rules and market cap of top 40 stocks as at March 27, 2018.

“Our hypothetical analysis, based on market cap data on March 27, reveals Hartalega Holdings Bhd and Dialog Group Bhd could be included, while AMMB Holdings Bhd and Astro Malaysia Holdings Bhd could be excluded from KLCI.

“Maintain end-2018 KLCI target of 1,880 points (15.9x P/E) and top three picks for Malaysia (Axiata Group Bhd, Dialog and Westports Holdings Bhd),” it said.